As expected,  we continue to show brisk sales as people are taking advantage of great mortgage rates and the first time buyer’s tax credit. The Rhode Island Association of Realtors reported last Wednesday that sales of single-family homes rose 29 % in October in year-over-year comparisons, but as we work through the distressed listings, the median sales price continued to decline

Here are the highlights of the RIAR report:

• 787 SF sold, compared with 621 last year.
• The median sales price was $200,000, down from $215,000 during October 2008
• 22% of sales were distressed properties
• The median price of sales without short sale or foreclosure was $230,000

The multifamily home market fell slightly in year-over-year comparisons:

• 187 sales in October 2009, down from 193 a year earlier, a 3.1%drop.
• The median price fell from $116,000 to $110,000.
• 18.6 % of those were distressed sales.

Condos had a 35% increase in sales in October compared with the last year:

• 111 sold compared with 82 a year earlier.
• The median price fell 29 % to $161,000 from $227,500.
• 21 % of the sales were distressed.

With Mortgage rates at historic lows, and lower prices, home affordability conditions are the best on record since 1970. The expanded tax credit should drive the spring market; helping the move-up buyer as well as the first-time buyer. Since potential buyers have until April 30 to have a contract in place, we should continue to see robust sales through  Spring.  

This Week’s Real Estate Insight:

By the time the credit expires, we should have worked though enough inventory that prices stabilize or even increase slightly, then the market could stablize because buyers won’t be paralyzed by worry about further decline in home values.

The RI Fire Safety Code Board of Appeal and Review has postponed fire safety requirements for interconnected smoke and carbon monoxide detectors in three-unit dwellings in the state until Dec. 31, 2010. The Board first extended the deadline until July 1, 2009 to address questions about wireless technology, interpretations of the code, short sale and foreclosures and confusion over other enforcement issues. 

Some inspectors were interpreting the code to require owners of three-unit dwellings to install a separate meter for the new fire safety device instead of drawing from one of the existing meters, this could have forced property owners to spend thousands of dollars to relocate the entire meter bank, according to the Fire Safety Code Board.   The Board, State Fire Marshal, State Building Board, State Building Commissioner, and others worked together to create a solution to avoid undue hardship to owners of existing three-unit dwellings.

 The Rhode Island Association of Realtors  is working with the State Fire Marshal’s Office to organize training about the revised interpretation. click here to read Interpretation : http://www.ri.gov/RIFSC/interpretations/int_details.php?id=168&agency=FSC.

Contact the Fire Safety Code Board of Appeal and Review at (401) 462-0940 if you have any questions.